Mori Seiki Co. Ltd. and Gildemeister AG have announced a global “business and capital collaboration” that will tie together the two machine tool builders in activities that may include production, purchasing and the development of machines, as well as sales and services in selected markets.
Each company agreed to a cross-shareholding investment of 5 percent, which means that Mori Seiki will become the largest, single shareholder in Gildemeister. Also, Mori Seiki’s President Dr. Masahiko Mori, and Gildemeister CEO Rdiger Kapitza will become directors of each other’s firm.
“The world of machine tools has become global,” Kapitza explained in a statement. “Meeting and overcoming the challenges of the international economic crisis demands strong alliances. We will bundle our resources in order to achieve joint efficiency advantages."
Thomas R. Dillon, President of Mori Seiki U.S.A. Inc., reaffirmed that changes in the global machine tool industry dictated the collaboration agreement. “It is critical that we pursue a business model that will position Mori Seiki for strong future growth,” according to Dillon.
Dillon emphasized that the current focus of the collaboration is on global business opportunities. Mori Seiki U.S.A.’s domestic operating structure, including sales, will remain unchanged for the foreseeable future.
Mori Seiki and Gildemeister have complementary activities in business regions and product development, which will help to determine the specific areas of collaboration between them. By consolidating sales activities in selected regions, the new partners anticipate they will be ready to invest jointly in emerging markets. They also indicate they are considering establishing a customer finance company.
“In particular, the companies plan to control costs by leveraging the joint procurement and purchasing power of two major machine tool builders on a global basis,” according to a statement released by Mori Seiki U.S.A.
